New Delhi: Dairy major Amul has said it would increase the price of milk by Rs 2 effective from May 21. Managing Director of Gujarat Cooperative Milk Marketing Federation (GCMMF) Ltd which sells Amul products, R S Sodhi, said the increase in the milk prices is applicable in the major markets of Delhi-NCR, Gujarat, West Bengal, Kolkata, Uttaranchal, Maharashtra and other states due to an increase in production cost.

Sodhi added, “In the last financial year, our revenue growth was because of higher volume and there was no price increase across our product portfolio. But in this year, we are expecting growth in both volume and value terms.”

The last revision in the milk prices took place in March 2017, stated GCMMF. The revised price of 500 millilitres (ml) pack of ‘Amul Gold’ in Ahmedabad will be Rs 27, the price of ‘Amul Shakti’ is fixed at Rs 25, ‘Amul Taaza’ at Rs 21 and ‘Amul Diamond’ at Rs 28, said GCMMF. The cooperative added that there has been no change in the milk price in Gujarat state.

GCMMF said, “This increase in milk prices by Rs 2 per litre has happened after a gap of two years with an aim to provide remunerative milk purchase price to our milk producers owing to drop in milk production and increase in the cost of production.”

Considering the increase in the cost of milk production, all member milk unions of Gujarat have increased the milk purchase price by a minimum of Rs 30-50 per kg fat (5-8 per cent) over the last few months, added GCMMF.

A top company official said that the co-operative is expecting a 20 per cent increase in its turnover this fiscal at around Rs 40,000 crore, driven by likely growth in volume and value terms. Notably, GCMMF had posted a 13 per cent increase in its turnover at Rs 33,150 crore during 2018-19 from Rs 29,225 crores in the previous fiscal.

Recently, GCMMF had said that the provisional unduplicated group turnover of Amul Federation and its 18 member unions crossed Rs 45,000 crore in 2018-19, an increase of 13 per cent from the previous year. The 18 member unions of Amul Federation, with a farmer-member strength of more than 36 lakh across 18,700 villages of Gujarat, are procuring on an average 230 lakh litre of milk per day. The member unions of Amul plan to enhance the milk processing capacity from the current level of 350 lakh litre per day to 3,80,400 lakh litre per day in the next two years.

(With agency inputs)